Real Estate

(Image of Tracy Jong's Logo)

Are you a first time home buyer? Most first-time homebuyers tell us that buying a new home is both a scary and a fun experience. Below is some information about what to expect and the various parties involved in this process.

How our office can help you when you sell your home?

  • Review the purchase offer for legal issues
  • Work with buyer’s attorney to move transaction along smoothly to closing
  • Obtain reimbursement of prepaid property taxes for the period after the sale
  • Obtain reimbursement of prepaid oil or propane deliveries, homeowner’s association fees, etc.
  • Secure title curatives for encroaching fences, shed or driveways
  • Obtain updates to the abstract of title and survey
  • Prepare your proposed deed, transfer tax returns and property transfer report to put the property tax bills in the new owner’s name
  • Assist in collecting paid property tax receipts, building permits and certificates of occupancy
  • Arrange the pay-off of your current mortgage and home equity loans
  • Prepare affidavits that may be necessary—name affidavits, non-bankruptcy affidavits, fence affidavits, family tree affidavits, proof of death affidavits, etc.

How our office can help you when you buy your new home?

  • Review the purchase offer for legal issues
  • Work with your bank attorney and seller’s attorney to move transaction along smoothly to closing
  • Review the survey to determine if there are encroaching fences, sheds, driveways or other structures
  • Review the deed to be sure it conforms to the survey, correctly names the parties, and warranties against title defects
  • Review the abstract of title, tax searches and bankruptcy searches to identify problematic liens
  • Review the abstract of title to identify problems in the chain of title
  • Review tax searches and receipts to identify arrears
  • Review and explain the mortgage documents
  • Obtain title insurance and other requirements of your bank
  • Assist in negotiations where there is an unfavorable property inspection report or final walk-through
  • Refer you to reputable mortgage and insurance representatives
  • Obtain guaranties from seller and seller’s attorney for payment of final utility bills, mortgage, payoffs, property taxes, and the like

Roles and Responsibilities of the Participants

This is certainly not a comprehensive list, however, it will summarize the important parties and roles involved in the real estate transaction you are about to undertake.

Seller:

The seller's responsibility is to (1) clear title objections raised by the buyer, (2) prepare the premises to deliver possession in "broom swept move in condition," (3) provide tax and judgment searches to show there are no liens against the property and that the taxes have been paid, (4) make any repairs necessary or negotiated in the contract or addenda, and (5) remove any contingencies in the contract (sale of home, etc) (6) reasonably cooperate to facilitate inspections required by buyer's attorney or bank.

Buyer:

The buyer's responsibility is to (1) secure financing, (2) arrange for prompt inspections, if required, (3) remove contingencies in the contract (sale of home, mortgage contingency, etc.), (4) reasonably cooperate in anything required by the title company, attorneys or bank for closing.

Real Estate Brokers: Technically, once you have "gone to contract," the broker's responsibility ends. However, this is where service counts and your broker may be a wonderful resource in facilitating the process. Brokers may assist in scheduling inspections, collecting documents required for financing or clearing of title objections, working with building departments to get certificates of occupancy/compliance, and other miscellaneous things necessary for closing. If your broker assists in any of the foregoing, he is offering you "deluxe service" and you can be sure you have selected a great broker who goes the extra mile for the client. (Ultimately, however, the buyers and sellers are responsible to do what is necessary for closing).

Average costs might be:

  • Abstract fee - approx. $200-$600 to update and will include judgment search and tax search
  • Legal fees - $350-$750 (or up to 1% of price)
  • Survey fees - approx. $200 to $1000
  • Transfer tax - $4 per $1000 of sale price
  • Recording fees - approx. $20-$200
  • Any fees a seller or buyer has agreed to pay on behalf of other
  • Any fees charged by your mortgage company for payoff statements and satisfactions (typically $25-$50)
  • Real estate broker fees (typically 5-8%)

The attorney will customarily advance these costs and will be repaid at closing.

Documents Needed for Sale of Property

For closing, the following must be provided by sellers:

  • Survey of the property,
  • Deed for property (merged deed or deeds for all separate parcels),
  • Name, address, phone, fax and account number of mortgage company,
  • Name, address, phone, fax and account number of home equity mortgage company, if any,
  • Copy of receipt for payment of school taxes,
  • Copy of receipt for payment of town, city and property taxes,
  • Copy of receipt for payment of county property and special district assessments taxes,
  • Social security numbers,
  • Copies of all certificates of occupancy for new construction (barn, pool, deck, fence, etc.),
  • Abstract of the property;
  • Copy of Sales Contract or Purchase Offer; and
  • Other documents relevant to this transaction

Closing Costs

In most cases, buyers are responsible for the following closing costs: engineer and other inspections; recording of deed; filing of equalization and assessment report; recording of mortgage; mortgage tax; and legal fees. Your bank will likely assess closing costs against you such as points, legal fees, bank inspections, credit reports, notary fees, appraisal reports and related items. These costs will be set forth in your loan disclosure documents when you sign for the loan at the bank. The bank may also require you to advance one year's worth of taxes and insurance (this also will be a term in your loan documents if it is required).  Average costs might be:

  • Mortgage tax (approx 1% of mortgage amount)
  • Legal fees - $350-$750 (or up to 1% of price)
  • Bank attorney fees -$250-$450
  • Title insurance (if required, typically $300-$700)
  • Sales tax on personal property transferred with real property
  • Recording of deed, mortgage & related forms - $100-$500
  • Recording of any collateral documents such as Powers of Attorney, Driveway Licenses, Fence Agreements, Borderline Agreements - $30-$50 each
  • Other fees disclosed in your loan disclosure papers such as credit reports, appraisals, commissions, “points”, origination fees, inspections, escrow fees, and other related bank fees
  • Mortgage broker commissions, if any (typically 1-3%)

In most cases, sellers will be responsible for the following closing costs: transfer taxes; survey update; abstract update; tax, bankruptcy and judgment searches; broker commissions and seller’s legal fees. If there is a private septic or well, seller is typically responsible for inspection of these utilities. However, the actual terms may vary according to the agreements reached in your purchase offer, binder or contract of sale.

Mortgage Broker or Loan Officer:

The loan officer acts as a liaison of sorts and assists in collecting information from the buyer to provide the mortgage underwriter in order for the bank to determine if it will offer a loan, upon what terms and at what rates.  Your mortgage broker will assist you in applying for and selecting the best loan product for your needs, will help you qualify, and will help you in the process of providing information the bank will need to offer you the loan. For example, a small business owner without traditional pay stubs may have trouble providing income verification. A mortgage broken may help you qualify for a "stated income" loan. A potential purchaser may also qualify for incentive programs for low income, middle income, down town revitalization and many other programs.  Your mortgage broker is an expert on the many loan products available.

Bank Attorney:

The bank attorney represents the bank's interests at closing. The bank attorney assures that the proper documents are executed to extend the loan and secure the obligation. These will include a promissory note, mortgage and related documents. The bank attorney also assures that the collateral, the property, is (1) worth a sufficient value to secure the loan (usually via an appraisal), (2) free from encumbrances (e.g. liens, judgments and other outstanding mortgages), (3) not in jeopardy of things which would negatively affect the value (judgments against the buyers, environmental hazards, legal liabilities, zoning or building code violations, etc.), and (4) taxes and insurance will be paid on the property throughout the term of the loan (to avoid a loss due to fire, disaster, or tax foreclosures). (This is often done through an escrow account.) To assist in this process, an abstract, appraisal, judgment search, lien search, survey and title report are usually obtained by the bank attorney. Who pays the cost of these items is subject to both custom and negotiation in the contract.

Title closer or Title Attorney:

The Title Attorney's job is to be sure that title is clear to transfer. In addition to ensuring that taxes are paid and no liens exist on the property, the title attorney will look into prior transfers and the chain of ownership. Of particular importance are wills and intestate transfers (passed upon death where there was no will). The title attorney wants to be sure the seller is the only owner and has the right to transfer the property to the buyer. The title attorney may also look into some of the same issues as the bank attorney.

Seller's Attorney:

The Seller's Attorney prepares documents to transfer the property to the buyer. These documents include the deed, Real Property Transfer Report, Bill of Sale, Equalization and Assessment Report and Closing Statement. The seller's attorney also ensures that the seller's are getting those things to which they are entitled under the terms of the contract, especially utility and tax adjustments.

Buyer's Attorney:

The Buyer's Attorney will check all of the above from the buyer's perspective. While other parties owe their allegiance to the bank or seller, the buyer's attorney has the responsibility of protecting the buyer in every aspect of the transaction. The buyer's attorney will advise the buyers about the terms of the transfer, the financing, the status of the property and the entire bundle of rights affecting the buyer in the course of the transaction. For example, the buyer's attorney tries to be sure the terms of the bank are not overreaching or burdensome to the buyers. The buyers attorney prepares documents for closing, reviews the documents of all other parties, and checks to be sure that all of the taxes and utility charges that should be properly assessed to the seller are accomplished via closing adjustments. Traditionally, the buyer's attorney does much of the coordination of the various parties in the transaction and brings the closing together. The cost for these services is typically only about 1/2% of the cost of the home, while the real estate brokers make 3-6%!

What Happens Next?

Once you have contracted to purchase real property, both parties will proceed to carry out their obligations under the contract. Primarily, buyer will order inspections, review the legal status of the property prior to acceptance, and arrange for financing of the purchase. Seller will update the survey and abstract, order tax, bankruptcy and judgment searches. This stage is the proverbial paperwork shuffle. This process usually takes from three weeks to two months to reach closing. The greatest delay is generally with the bank.

Closing will be scheduled rather last minute, however, you will now about a week in advance that closing is approaching. The date in the contract is a "wishful goal." Please do not plan on closing on that date. However, you can expect closing to be within 10 days of that date either way in most cases. Keep this in mind when making plans for your move and notification to utility companies, moving companies and landlords. In my experience, it is best not to make any notice until after the final mortgage commitment is received in writing.

The Closing

All or most of the parties enumerated above will be present at the closing. The closing will finalize the transaction and complete the ownership transfer. Closing will take place at the County Clerk's Office or bank attorney's office in most cases. Closing will normally take one hour to ninety minutes. You should plan to take a full half-day from work on closing day. Sometimes the closing takes three or four hours if problems arise. Dress appropriately and bring a driver's license. You may also need to bring both a certified check and a personal check toward closing costs and adjustments. Your attorney will advise you of these details prior to closing.

Things to Consider in New Construction Contracts

Building a new home is exciting. However, it is a complex legal transaction with many factors to consider. It can be more complicated than purchasing an existing dwelling. Here are a few:

Site Issues:

  • Have you researched the builder’s reputation?
  • Who owns the real estate where the new construction will be located?
  • Have you seen a “stake out” of the site done by a surveyor (rather than rely on a tape map)?
  • Are there restrictive covenants?
  • Is the site in a flood zone, wetland or development district?

Cost:

  • What is the price? What are the extras? Are the extras in the appraisal for financing determinations? How will extras be paid? If there is no closing, can prepaid extras be refunded?
  • What fees will you pay for? Buyer often pays most of seller’s costs/fees in a new construction contract. How do these affect the total purchase price and your budget? Are they in the appraisal for financing determinations?
  • When will the builder be paid? In draws through construction or all at closing? Who determines when draws are earned or will be paid?
  • What utility hook-up costs will be incurred?
  • If the builder is advanced payment prior to closing will it be escrowed until closing or will it be used along the way?
  • Do the contingencies in the mortgage match those in the construction contract? Are there any discrepancies or contradictions?
  • Will there be a second mortgage provided? Since there is a 3-day recession period, will be possession (move-in-date) be delayed by 4 days from closing?

Construction Schedule:

  • When will construction begin? Will it only be after you have closed on your existing home? Do you have an interim/temporary place to live?
  • What things will delay the anticipated closing date? How will they be dealt with? For example, if materials are delayed, construction cannot proceed on schedule and a certificate of occupancy can not be obtained as the schedule anticipated. The bank will not release the mortgage proceeds until a c/o is issued.
  • When must the buyer select materials and how does this relate to the construction schedule?
  • How will the “punch list” (list of incomplete items at final inspection) be handled? Will there be an escrow for the incomplete work? What will the timing for completion be?
  • What warranties are provided? Are there caps or limitations?
  • Who will do your final inspection? Will you rely on the building inspector or use your own engineer or architect?
  • Can you negotiate a penalty for builder’s failure to close on time?
  • When is possession? Will you be able to move anything into the house prior to closing?

Purchasing Vacant Land for Residential Use

In some cases, purchasing vacant land for your dream can be more complicated than the purchase of an existing dwelling. You may require the services of an attorney, surveyor, architect, civil engineer, general contractor and/or banker to structure the transaction to meet your needs.

Things to Consider in Choosing your Parcel:

  • Location: rural, village, city, close to expressway, work, schools, stores, or special services
  • Type of land: open fields, woods, water features, hills
  • Aesthetics: hill top view, pond, stream
  • Parcel size: lot, acreage, farm
  • Type of residence: single, double, in-law apartment
  • Approximate square footage of proposed home
  • Out buildings: shop, kennel, barns, sheds, boarding stables
  • Outdoor storage: many towns have zones that do not allow outdoor storage of boats, campers, utility trailers, etc; Self employed contractor, plumber, electrician on-site storage of materials, vehicles
  • Animals: number of dogs, horses, farm animals
  • Home business: hairdresser, auto, small engine, repair shop, ceramic shop, professional office, farm market

We recommend that boundary lines be staked by a surveyor so you can see “in the field” where the property boundaries are located with precision. Many people purchase vacant land for custom building to meet very particular or special needs. We recommend that you carefully list all of your needs, differentiating between your “wants” and “musts.” This list will assist you in selection of parcels and assist in determining required approvals, permits or zoning variances. Obtain a copy of the local zoning code and review it to determine which parcels will most closely meet your needs. Once you have chosen a few prospective parcels, consider meeting with the local building inspector to discuss your plans. Uncover any issues before your purchase!

Permits and Variances

Depending upon the parcel chosen and your specific needs, there may be a variety of permits and variances required. Other than site plan approval by the local jurisdiction (village, city or town) and a building permit, you may be required to obtain special use permits, variances, county health permits for septic systems and/or well, DEC permits for work along streams or steep slopes, Army Corps of Engineers permits for wet lands, County Agriculture Department approvals, Highway Department Road Boring Permits, and the like.

It is recommended that any offer to purchase be contingent upon obtaining approval to build and any permits or variances required for your special needs.

Site Development

A major “unknown” when you first see a vacant parcel is the cost of improving that parcel to build. The site development costs typically include engineering fees, permits and variances, wells, septic systems, grading and driveways. These costs can exceed the purchase price of the land (shallow bedrock may exist, for example). Prior to purchase of a particular parcel, it is recommended that a purchaser obtain a realistic cost estimate for these costs and be sure they are within his or her budget. In some cases, a higher priced parcel is a “better buy” where the cost of improving the higher cost parcel may be much less than the lower cost parcel. This may be the case where utilities have to be brought great distances, as these costs add up quickly.

A “walk through” by local excavating company can give you a rough estimate with respect to the cost of doing site preparation—grading, septic, and driveway excavation. A firm cost may be obtained with a finished site plan. It is important to determine if the lot has been previously filled because foundation footings must be poured on naturally compacted soils.

Local utility companies will provide estimates with respect to the cost of bringing their service to your parcel and/or building site including “tap in fees.” Tap in fees are common for water, sewer and gas. Where a well or “private water” is anticipated, it is also prudent to explore water quality with the neighbors. However, keep in mind that even wells nearby can produce dramatically different water quality due to depth, soil, bedrock, and other factors.

Engineering

An “approved” building lot means the municipality has approved a site plan for building on that parcel and that utilities are available “at the road.” Many lots are advertised as “approved building lots” but fall short of being “shovel ready.” It is important to understand that approvals are time limited and may have expired or will expire before you begin construction. You may need to update these approvals, an additional cost to consider. The site map for the parcel should contain the following (in addition to things required by the local jurisdiction):

  • Survey marking the corners of the parcel and any buildings
  • Location of all easements and rights of way, including public utilities
  • Geography—topography, water table, bedrock depth, wet lands, flood zones, streams, natural drainage features, and other natural barriers
  • Location of future buildings
  • Elevation grades for all buildings/roadways
  • Road cuts for driveways
  • Location of public utilities water, sewer, electric and gas (state and local codes require to use of public utilities if they are available)
  • Placement of utility service lines (water, electric sewer, etc) to building site from nearest utility drop/tap
  • If public water is not available, location of the well
  • If needed, the design of a septic system to meet County Health Department requirements

Even if the parcel has been previously approved, an updated site plan containing any changes to meet your specific needs may be required.

In the absence of a site plan, the local building inspector can likely give you information about locations of public utilities, septic systems, and grading for similar properties. He may also be able to provide information about water quality and average well depth of nearby wells.

Zoning

  • What is the zoning designation where the parcel is located: residential, agricultural residence, agricultural, commercial?
  • Is the intended use permitted in such zone?
  • Nearby land utilization: farms (farms often contain noxious odors from manure, rotting produce and the like), commercial or manufacturing.
  • Are there similar land uses nearby?
  • Is the lot size sufficient to meet zoning requirements for intended use?
  • Is this to be a subdivision from a larger parcel? Has the municipality approved the subdivision?
  • Does proposed residence size and type meet zoning requirements?
  • Are there any covenants (such as agricultural districts or rights of way) that would restrict land usage?
  • Are there any natural barriers (steep slope, streams, wet lands) that must be modified?
  • Are there any special permits or variances necessary prior to getting a site plan approval?
  • Are there any deed restrictions that would limit intended use?

Do not let “love” of a particular parcel supersede common sense. Carefully compare your needs with the zoning for the parcel and the budget for developing the site for construction. Determine what, if any, permits or variances are required and if it is realistic to obtain them. Attempting to obtain variances and permits after commencing the building process will most likely lead to disappointment and/or unnecessary expense.

Planning for The Day When Someone Can No Longer Live Alone

How will I maintain my independence as I age? What happens when my parent can no longer live alone? These are questions we all ponder. Let our office help you find answers.

When someone can no longer live alone in his or her home

Many people believe you go from your own home straight into a nursing home. In reality, this is generally not the case. Most people benefit from progressive stages of care as they transition from independent living to full time care.

Nursing homes are for patients who require 24-hour skilled nursing care. There are many levels of care in communities. Learning the difference between custodial (non-medical) care and medical care options will help you to make informed decisions when the need arises.

Custodial care is non-medical assistance and personal care associated with maintaining independence. Examples of custodial care include bathing, shopping, housekeeping, meal preparation and transportation. These services are generally not covered by medical insurance since they are non-medical in nature.

What if I want to remain in my home for as long as possible?

Planning is the key. Home care services can be arranged to meet individual needs with certified agencies in your community. Home care agencies can provide hourly care either daily or weekly. Home health aides can assist with personal care, errands, light housekeeping and meal preparation.

You may also contact local community programs to inquire about volunteer transportation services for shopping or medical appointments. “Meals on Wheels;” Offices for the Aging, fraternal organizations, religious organizations, not-for-profit and charitable organizations may provide this genre of services. Each community’s programs will differ.

Privately arranged services may also be an option if you know a trusted person to hire for assistance. Be extremely wary of unknown people. The risks of theft and elder abuse/neglect are high when they have access to your loved one’s home, valuables, and medications.

Skilled Home Services may provide in-home medical assistance and medical insurance may cover a portion of the costs. Skilled nursing medical services in the home can be arranged through a visiting nurse service. Services provided may include medical care such as condition assessment, dressing changes and teaching.

Adult day care programs provide exercise, supervision and socialization. Usually a hot meal is provided during the program. Programs hours vary, but are generally during day time hours Monday through Friday.

Adult or Assisted Living Homes are non-medical facilities that provide long term care to those who are unable to live independently and require some minimal supervision and personal care. These homes are generally apartment-style living units staffed 24-hours a day. The staff provides custodial care and supervision in the form of personal care, housekeeping and meals. Some homes offer additional services through contracts with home health agencies for those residents requiring additional assistance beyond the scope of regular services. There is generally an additional cost for these services.

Continuing Care Retirement Communities provide a range of progressive services including home care, nursing home care, and rehabilitation services to community residents. There is usually a guarantee of access to a higher level of care when it is required.

24-Hour Skilled Nursing Home Care is available for disabled people and those needing ongoing medical care and supervision. Generally, a Patient Review Instrument (PRI) completed no more than 30 days prior to admission is required. It is completed by a qualified health professional. In Monroe County, Eldersource can arrange for a PRI.

Hospice Care is “end of life” care for the terminally ill. This is comfort care in a home like setting when further aggressive medical care is deemed inappropriate. Specialty Care for certain illnesses may be available. As an example, specialized dementia units may be available for Alzheimer’s patients to provide additional security measures for this population.

Respite Care may be available for temporary short term assistance for those caring for loved ones at home. Generally, respite care is intended to provide relief to the primary caregiver for a specific event such as illness of the caregiver, hospitalization, or a family vacation.

There are other ancillary services within your community coordinated through social service agencies, community senior centers and some local churches. Exploring these services will help you understand what is available, allowing you to make a transition plan that meets your needs.

How to Proceed?

Purchase Offers may be faxed to our office 24 hours a day at (585)247-9171.

In your fax cover sheet, be sure to provide the following information:

  • client's name
  • address
  • telephone
  • e-mail or fax if available

Ms.Jong will contact you after we receive and review your documents.

In most cases, an attorney approval letter will be sent within 72 hours.

Chinese-speaking clients may enjoy working with Lisa Tung of M-T Mortgage. Through M&T Mortgage, Lisa offers over 80 mortgage programs, specializing in no income verification loans for business owners. She also actively assists new home buyers with special incentive and grant programs. Lisa's phone number is (585)258-8355.

Homeowners interested in affordable interior decorating assistance may enjoy working with Interior Designs.  Please contact Cheryl Thompson at (585)797-8430 for more details.

For meetings and telephone calls with Chinese-speaking clients, we may be able to translate to Mandarin.  Please contact our office if you require such services (you may leave a voice message fax, or email in Chinese).